Gold moved lower and broke through the 1098 low this week, which signals for even more weakness to come. A decline from the 1128 to the 1092 region was a black wave 3 that was reversed by a higher and corrective wave 4 over the past few sessions. In the near term another leg lower, in wave 5, is likely to happen before any bounce to the long side will be seen.

With a higher dollar, the technical outlook remains bearish for gold as long as the critical 1118 resistance level holds. Any move above that level, while the 1092 low remains in place, will require a new wave count, since wave 4 must not overlap the territory of wave 1.

TheLFB Charting : Gold 4-Hour View

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